Amid new reports of U.S. companies initiating a rapid exodus from China, President Trump has announced the delay of the next round of tariff increases on Chinese goods from October 1st to October 15th.
U.S. Company Survey – More than a quarter of the respondents – or 26.5% – said that in the past year, they have redirected investments originally planned for China to other regions. That’s an increase of 6.9 percentage points from last year, the AmCham report said, noting that technology, hardware, software and services industries had the highest level of changes in investment destination (read more)
President Trump apparently senses the diminishing position of Chairman Xi. The status quo, U.S. disinvestment, has put Beijing into a weakening position. As the president noted today during remarks from the oval office, Xi’s belt-and-road (aka ‘bribe and loan’) supply chain program is collapsing.
President Trump: “We’re doing very well with China. And you probably saw the numbers that have come out and come out — some of them coming out just today. But China is — their supply chain is breaking up. The supply chain of China, which was this unbreakable, powerful tool that they had, is breaking up like a toy because companies are moving out. And China wants to make a deal.”
We’ll see what happens. We have to make the right deal for this country. China has been taking out hundreds of billions of dollars a year out of our country.
And, you know, I read — I read papers like the Wall Street Journal. They don’t have a clue. They haven’t got a clue. They don’t make any excuses for the fact that China has been literally ripping off the United States in the worst manner for so many years.
Five hundred billion dollars pouring out of the United States. And I hear people — I don’t even know. Do these people have any education on anything? It’s common sense maybe more than anything else.
[…] By the way, China is having the worst year they’ve had now in 57 years, okay? Fifty-seven. It was 27. It was 22 and then 27. It’s 57 years. This is the worst year they’ve had. And it’s only going to get worse. So I think they want to make a deal too. We’re dealing with them, but I think they want to make a deal.
As you know, they’re coming in sometime in early October. And we’re speaking to them constantly. And they also — they made a couple of moves last night that were pretty good. You saw that, right? They were pretty good.
Q Which moves do you mean, sir?
THE PRESIDENT: They were pretty respectful to our people. You’re going to see it, because you were one of the people that reported it. You — your group.
But China is — China is — about to having to do with tariffs, Jeff. Having to do — you saw what they did.
Q With purchases?
THE PRESIDENT: They took tariffs off certain things. A lot of things.
Q And you’re happy about that?
THE PRESIDENT: Well, I think they did the right thing. I think it was good for them. But they took them off. Yeah, I think it was a gesture, okay? But it was a big move. People were shocked. I wasn’t shocked. But I deal with them, and I know them and I like them. And I hope we can do something. (link to comments)